Hobart council approves ERA, grants tax abatements to Amazon despite widespread public opposition

The Hobart Common Council on Jan. 7 approved a set of measures to clear the way for a proposed Amazon data‑center campus, voting 6-0 to declare the project site an Economic Revitalization Area (ERA) and to grant tax abatements and related exemptions to Amazon Data Services, Inc. and a related entity.

Mayor Josh Huddlestun opened the meeting and the Council adopted public‑hearing rules before hearing more than an hour of public comment from residents who urged the Council to delay approval until site plans, environmental studies and full fiscal comparisons of upfront payments versus foregone taxes were available.

“I want full transparency — what is the full amount of the tax abatement and how much will the City lose?” asked Jessica Gadberry, a resident who told the Council the figures should be public. Several speakers cited potential impacts on private wells, noise (including concerns about low‑frequency sound), air emissions, property values and public‑school neighborhoods. Bill Eich, representing the Eagle Creek Homeowners Association, said the site is not “blighted” and proposed an independent $2.25 billion irrevocable trust to compensate neighbors for hypothetical future harms.

City legal counsel Thomas Everett of Barnes & Thornburg summarized the negotiated agreements for the Council and public: the developers estimate an $11 billion total project investment; more than 400 permanent full‑time positions would be created with an average wage the presentation listed as $37.44 per hour; and Amazon would make an initial $47 million payment to the City by Jan. 31, 2026 with additional milestone payments of $45 million, $43 million and $40 million tied to construction milestones. The draft agreements also call for up to $2 million per building per year in community payments, a $10 million payment tied to the first building permit and commitments on generator testing, roadway improvements, acoustics, sustainability and other operational measures.

In exchange the Council approved a 10‑year, 100% real property tax abatement for each building and a 35‑year, 100% exemption for enterprise information technology equipment. Everett told the Council the City may suspend abatements or the IT exemption if Amazon fails to make the agreed community payments and that, after a year of nonpayment, the City could terminate the agreements.

Public commenters offered conflicting views. Kreg Homoky, representing Union Local 20 and the Northwest Indiana Building Trades, spoke in favor of the project for its potential jobs and economic benefits. Dozens of residents, neighborhood associations and advocacy groups — and a memo from Good Jobs First included in the record — urged more study, questioned whether a multi‑billion‑dollar company needs local tax relief and requested a town‑hall discussion or ballot referral. Multiple speakers and written submissions specifically requested environmental impact and noise studies and asked the Council to defer action until a site plan is publicly reviewed.

Votes at a glance - Resolution 2026‑01 (declaring the Economic Revitalization Area): approved by roll call, All aye (6‑0). - Resolution 2026‑02 (real property tax abatement for Amazon Data Services, Inc.): approved by roll call, All aye (6‑0). - Resolution 2026‑03 (real property tax abatement for Hobart Owner LLC): approved by roll call, All aye (6‑0). - Resolution 2026‑04 (Enterprise IT Exemption Agreement and Community Enhancement Agreement): approved by roll call, All aye (6‑0).

What the agreements say and what remains unclear

City counsel’s summary lists the headline financial and incentive terms above and states the developer will be required to comply with applicable City ordinances at the site‑plan and permitting stage. The draft agreements (as summarized at the meeting) also include a clause that would allow the company to challenge assessed values or seek additional tax relief in the future. The record contains no site plan and city officials confirmed the Plan Commission will review site‑plan and subdivision details later in the regulatory process. Several residents and memos in the record urged the Council to require an environmental impact study and stronger, enforceable language on community protections before advancing incentives.

What happens next

With the Council’s approval the ERA designation and the abatement agreements are in place. The minutes record that plan‑level approvals, such as site plan and subdivision reviews, remain a separate process and that developers must obtain the applicable permits; the Plan Commission and permitting staff will review those materials as they are submitted. The public record for the Jan. 7 meeting includes dozens of written remonstrances and a noise‑study packet submitted by neighbors; multiple speakers said they intend to continue advocacy and to seek further public hearings.

—Reported from the Jan. 7, 2026 Common Council meeting at the School City of Hobart High School Auditorium.